The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1887-09-07

three cases were heard together The first
witness called was Mr. John Porteous,
manager of through traffic of the Central
Vermont 1t was shown by Mr. Porteous
that the rates complained of were made by
the National Dispatch line and not by the
RAILROADS over which it's cars run. The
| National Dispatch line makes a through
western rate on freights, and all the roads
! over which the cars run take their pro rata
part of this through tariff for drawing the
cars. But all the roads dsclaim response
bility for the rate and take what is assigned
to them by this corporation. The Boston
| q Lowell showed that they were not con-
suited when the rate was made and had
no voice in their share of the division
! They also showed that their returns on Ma
tional Dispatch business were made to the
Central Vermont railroad. The freight rate
| from Boston to Montreal is the same as from
New York to Montreal If the former rate
is higher than the latter Montreal merchants
would trade more with New York, thus hurt
ing the lines New England business. These
rates are on a forty-ive-cent basis. The
witness claimed that the export business
has been injured by the interstate law.
Upon counsel Directing to revealing the pro-
portion of each roads share of the freight
| proceeds Chairman Cooley remarked that in
contemplation of the interstate law no mat
| ters concerning rates or anything else could
be other than public and that all rates are
supposed to be on file in Washington for
reference by the commission
G. s. Mellen, superintendent of the Bos-
ton q Lowell road, testified that he knew
| of no written agreement between the Lowell
road and Despatch Line, but the present ar
| rangement has been in vogue ever since he
| became connected with the road in 80. The
line furnishes the business and the road
does it and takes its share of the proceeds.
| Comparing through and local business, he
said the net earnings were greater on
freight from Boston to White River june
ton than on freight from Boston to Chicago.
The purport of his testimony was that if the
rates to the West were raised his road would
lose its receipts from through business and
that the loss of income would have to be
made up by raising of the local rates.
The petitioners rested the case here and
the defense called f. G.. Lucas, auditor of
the Central Vermont, who gave the last
years financial statements of the Central
Vermont and OgdensblIrg & Lake Cham
plain roads, embracing the freight earnings.
The evidence tended to show how depend
ent the Central Vermont is on through
business.
Friday morning E. A. Chittenden, super
intendent of local freight traffic of the Cen
trail Vermont railroad, testified that the
reduction of five cents was made on the first
and second class July Il, and that he has
been for several months working to bring
the tariff within the law. The charges from
Boston to points southeast of Ogdensburg
are not greater than to Ogdensburg. The
Central Nermonts rates are from twenty to
thirty per cent lower than on many western
roads. Senator Edmunds objected to the
admission of a table of comparisons offered
by Mr.. Chittenden. Counsel for the Lowell
road insisted that it was important to the
case in hand, and Chairman Cooley decided
that its admission was proper and necessary
S. G. Shurtleff, counsel for the Montpelier
Il Wells River road, stated that if the Cen
trail has to reduce the local tariff his road
would also. Being a competitor and not
having any through traffic, the road would
greatly suffer.
Ex-Governor Smith gave the early history
of the Central Vermont road and said that
the corporations property could not be re-
placed Tor less than $4,000, 600 or $50, OOO,-
600. The road has never paid anything out
side of actual expenses, taxes and interest
ON its bonds. The Vermont & Canada. the
Central Vermont proper and the Ogdens-
burg road were completed in 1851, and made
a through line from Boston in connection
with the line of steamers and the Lowell
road to the chief western points. In 1864
an all-ral line was established from Boston
to western points by these roads and the
Grand Trunk, Michigan Central and Lake
Shore. The National Dispatch line grew
out of the relation of these roads to each
other. This fast freight line has no regular
organization. All the roads covered by the
system of the National Dispatch line have the
same form of way-billing. The Concord, the
Lowell and the Northern being all short
lines gave the management of Joint and
local traffic to the Central Vermont Nu-
merous disputes grew out of the rates for
this local freight traffic. Finally, in 1881, it
was arranged to have the Central Vermont
manage it as heretofore, but to treat the
other roads to the south as one party and
they to settle their grievances amongst
themselves. Upon complaints from Ner-
mont that rates from the West to Boston
We're less than those from the West to Yer
mont points we made the Vermont rate the
same as for Boston. 1t was a great advant-
age to Vermont by way of cheapening flour
and other western products. As business
increased we all felt the need of new cars
and the officials of the road of our system
in their private capacity organized car
company. The charter of the National Car
Company was obtained in 1871 Finally out
side capital was put into the scheme as the
public grew confident of its successful opera
ton These cars ran almost everywhere.
The Grand Trunk road owned the share of
the cars which the officials of the road
owned at first-this company objectng to
any other arrangement. Competition for
freight became so sharp between the rail-
roads that many interviews were held be-
tween officials of competing lines. Differ
entails were discussed, but without avail
The Pennsylvania, New York Central, Bal
timore X Ohio and the Erie combined and
formed the four trunk lines, leaving us out
Contentious with this pool led to the rebate
system. Being invited to conference of
these roads in 1867 we urged ditferentials,
and Scott of the Pennsylvania thought our
claim just. This conference broke up in
very bad feeling. a scheme for dividing
freight was devised at conference in Mon
trea in 1874. The scheme did not work
The witness urged the physical disadvant-
ages of his road The Central Vermont
cannot live without its through business.
The Central Vermont has no voice in making
west-bound through freight rates The
rates of the present day are much lower
than formerly. The patrons of the
road think the present rates satisfactory.
Witness said he had explained before the
legislature of this state how it was that
more profit came to the road on butter
shipped from western points to Boston than
from Vermont points to Boston. The eX-
pense of handling local butter diminished
the profits to this extent
Arthur Mills, general traffic manager of
the Boston Albany, took the stand. He
was present at the trunk line meeting last
March to consider questions about to arise
for the Central Vermont was suggested by
an officer of the association, to which all
seemed to consent, but later the road So
liCited freight on the basis of larger differ
entails. The differentials are only for the
all-rail route. The Albany's tariff has been
conformed to section four, except where the
classification of the old local tariff varied,
and special tariffs are issued to remedy that.
The object of this complaint is to get the
commissioners construction of section four
as applied to this peculiar situation. In
order to comply with the law the Albany